- >
- Mortgage comparison>
- Self build mortgage>
- Self Build Mortgage - Compare Our Best Self Build Mortgage Rates table
Compare self build mortgages
Choose a self build mortgage that can cover the cost of building your home, by releasing money to you in stages.
Get free mortgage advice from an expert broker
Chorley Building Society 2 year discount for existing borrowers
More Information
| Application fee | No fee |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 3.25% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Wales | |
| Existing Borrowers Only | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Chorley Building Society 2 year discount for existing borrowers
More Information
| Application fee | No fee |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.60% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Wales | |
| Existing Borrowers Only | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Saffron Building Society 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | 0.5% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
| Available in England | |
| Available in Wales | |
| Broker Only | |
| First Time Buyers | |
| Minimum Age | 21 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Ecology Building Society term variable
More Information
| Application fee | £600 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first three years
Other fees may apply.
| Available Direct | |
| Available in England | |
| First Time Buyers | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Ecology Building Society term variable
More Information
| Application fee | £600 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first three years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Northern Ireland | |
| Available in Scotland | |
| Available in Wales | |
| First Time Buyers | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Saffron Building Society 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | 0.5% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
| Available in England | |
| Available in Wales | |
| Broker Only | |
| First Time Buyers | |
| Minimum Age | 21 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Hanley Economic Building Society 2 year discount
More Information
| Application fee | £299 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | £1,199 with an option to add to the loan |
| Available Direct | |
| Available in England | |
| Available in Scotland | |
| Available in Wales | |
| Max age at term end | 80 years |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Ecology Building Society term variable
More Information
| Application fee | £799 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| First Time Buyers | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Ecology Building Society term variable
More Information
| Application fee | £799 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Northern Ireland | |
| Available in Scotland | |
| Available in Wales | |
| First Time Buyers | |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Loughborough 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | £999 with an option to add to the loan |
| Product fee | No fee |
| Available Direct | |
| Available in England | |
| Available in Wales | |
| Max age at term end | 80 years |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Vernon 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | £1,999 paid upfront |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of the outstanding balance, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Wales | |
| First Time Buyers | |
| Max age at term end | 85 years |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Saffron Building Society 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | 0.5% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
| Available in England | |
| Available in Wales | |
| Broker Only | |
| First Time Buyers | |
| Minimum Age | 21 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Swansea Building Society 2 year variable for properties in Wales
More Information
| Application fee | £250 paid upfront (non-refundable) |
| Arrangement fee | 1% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 3.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in Wales | |
| First Time Buyers | |
| Max age at term end | 85 years |
| Minimum Age | 18 years |
| Minimum Income | £15,000 |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Swansea Building Society 2 year variable for properties in Wales
More Information
| Application fee | £250 paid upfront (non-refundable) |
| Arrangement fee | 1% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 3.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in Wales | |
| First Time Buyers | |
| Max age at term end | 85 years |
| Minimum Age | 18 years |
| Minimum Income | £15,000 |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Scottish Building Society 3 year variable
More Information
| Application fee | No fee |
| Arrangement fee | £1,249 with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 3.00% of the outstanding balance, in the first two years
- 2.00% of the outstanding balance, in the third year
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Scotland | |
| First Time Buyers | |
| Max age at term end | 85 years |
| Minimum Age | 18 years |
| Minimum Income | £40,000 |
| Permanent UK Resident | |
| Self Employed Accepted | false |
Saffron Building Society 2 year discount
More Information
| Application fee | No fee |
| Arrangement fee | 0.5% with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
| Available in England | |
| Available in Wales | |
| Broker Only | |
| First Time Buyers | |
| Minimum Age | 21 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Newbury Building Society term variable
More Information
| Application fee | 1% with an option to add to the loan |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 3.00% of the original loan, in the first year
- 2.00% of the original loan, in the second year
- 1.00% of the original loan, in the third year
Other fees may apply.
| Available Direct | |
| Available in England | |
| First Time Buyers | |
| Max age at term end | 70 years |
| Minimum Age | 21 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Hanley Economic Building Society 2 year discount
More Information
| Application fee | £299 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | £700 with an option to add to the loan |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Scotland | |
| Available in Wales | |
| Max age at term end | 80 years |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Hanley Economic Building Society 2 year discount
More Information
| Application fee | £299 paid upfront (non-refundable) |
| Arrangement fee | No fee |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | £649 with an option to add to the loan |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Scotland | |
| Available in Wales | |
| Max age at term end | 80 years |
| Minimum Age | 18 years |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Earl Shilton 5 year discount
More Information
| Application fee | No fee |
| Arrangement fee | £1,125 with an option to add to the loan |
| Booking fee | No fee |
| Completion fee | No fee |
| Product fee | No fee |
If you pay all or part of your mortgage early you will be charged:
- 2.00% of amount paid, in the first two years
Other fees may apply.
| Available Direct | |
| Available in England | |
| Available in Wales | |
| First Time Buyers | |
| Max age at term end | 85 years |
| Minimum Age | 18 years |
| Minimum Income | £15,000 |
| Permanent UK Resident | |
| Self Employed Accepted | true |
Looking for another type of mortgage?
What type of mortgage are you looking for?
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE
Overall representative example
| Based on borrowing | £170,000 over 25 years | The overall cost of comparison | 6.41% APRC Representative |
|---|---|---|---|
| Initial rate | 5.44% fixed for 2 years (24 instalments of £1174.37pm) | Subsequent rate (SVR) | 6.69% variable for the remaining 23 years (276 instalments of £1135.60pm) |
| Lender fee | £556 | Total amount payable | £342,166.74 |
What is a self build mortgage?
A self build mortgage lets you borrow money to build your own property. So if you're wondering 'Can you get a mortgage to build a house?' then the answer is 'Yes'.
If it's your dream to build your own home, a regular mortgage won't help. But a mortgage to build a house is a specialist mortgage especially for self-builders.
You might already have lots of ideas about what your new home will look like and where it will be, but the very first step needs to be arranging your finances. Without money, you won't be able to make your dream a reality.
How to find a self build mortgage
If you plan to build your own house, you'll need to look for self build mortgages. Most traditional deals can only be used for houses that have already been built.
You'll probably find that for a self build mortgage, UK building societies and smaller banks are a better bet.
How do self build mortgages work?
Self build mortgages transfer money to you in stages as you build your house. This is very different to buying an existing house as you'll receive a lump sum for that kind of loan.
With a self build mortgage, lenders like to make sure they're minimising their risk. They also want to see that you're spending money in the way you planned to, so you don't run out before the project's finished.
Usually, you'll have money released at specific times. This could include when you:
Buy the land
Build the foundations
Construct the house's shell
Finish the plastering, plumbing and electrical wiring
Complete the project and get the home valued.
Before you do your self-build, you'll need to think about whether you want to do a lot of the work yourself, or employ people to do it for you. If you're skilled and you want to do a lot of the work yourself, in partnership with plumbers and electricians where needed, this can be the cheaper route.
But if you don't work in the trade, you might want to take on the role of managing your surveyor, architect and tradesmen. If you don't want as much involvement as that, you can get a contractor to manage the whole project for you. Your lender will confirm whether you can factor this cost into your self build mortgage.
When do you get your mortgage to build a house?
This depends on what kind of self build mortgage you're getting.
Some house building loan options offer arrears stage payment. That means that you receive the self build finance after you've completed each stage. You'll have to prove how much that stage cost. For this kind of self build mortgage you'll need to find a way to pay up front for materials and costs.
The other type of mortgage to build a home offers advance stage payment. This means the money gets released to you by your lender before you need to pay each bill.
Either way, you'll need to think about financing your project as early as possible in the process. This'll mean you can make arrangements and budget accurately.
What kind of deposit do I need for a self build mortgage, UK wide?
If you're building your own home, lenders usually need a larger deposit from you.
Every mortgage has a loan to value (LTV) which is the percentage of the property's value the lender will cover.
For example, if the LTV was 75%, you'd need to put down the remaining 25% as a deposit.
Self build mortgages often have a separate limit on how much you can borrow for
buying the land, and
your projected costs for building the house.
For example, they might let you borrow 75% of the total cost of the land, and 85% of the projected costs for building the house.
What are the rates like on self build mortgages?
Self build mortgage rates - including interest rates and any fees - affect how much your mortgage costs. They're usually higher on a self build mortgage than on a conventional mortgage.
It's important to find the best self build mortgage to suit your needs.
The self build mortgage comparison at the top of this page lets you compare mortgage products from self build mortgage lenders . The comparison covers LTV, rates and overall costs. Once you've chosen one, you can check your eligibility for that particular self build mortgage by clicking the button on the right.
If you're struggling to find the right mortgage for you, you could speak to a self build mortgage broker to get some help.
Here are all the costs of mortgages and buying a home.
What are the benefits of a self build mortgage?
If you're getting a mortgage for self build, you're building your own home which is a dream come true for many people. It means you get to choose everything about it - where it is, what it looks like, how big it is and the interior features. It's completely bespoke.
One of the best things about building your own home and using a self build mortgage is that you don't have to pay stamp duty on the home. This means you could save thousands of pounds. You don't pay any stamp duty on the building costs, or on the property's value when it's complete - you just pay stamp duty on the land itself. Even then, you only pay stamp duty if the land cost you more than £125,000.
The stamp duty threshold has been temporarily increased to £500,000 during the COVID-19 pandemic until June 30, 2021. This means that you will not have to pay any stamp duty for the first £500,000 of the purchase price of your home.
The other benefit is that your home is likely to be worth a lot more when it's finished than what you've spent on building it and buying the land.
How much can I borrow through a house building loan?
This will depend on several factors including your income, your self build plans, your credit history and your outgoings.
We don't have a specific self build mortgage calculator, but our standard mortgage calculator" can be used as a rough guide. Use this in conjunction with our comparison table at the top of this page.
How else could I fund a self build home?
A self build mortgage might not be right for everyone. So you could think about whether you have any other options to fund the build of your new home.
Here are a few ideas:
Saving. If you've got a lot of savings it could be a good idea to use them as a cost effective way to build your home.
Remortgage. If you've got a lot of money tied up in your home, you could remortgage to release some funds.
Personal loan. You could get a personal loan, although this would only be up to £25,000.
Secured loan. You could get a loan that's secured against something else you own, like another property. But if you don't make your repayments, you risk losing the asset that you've secured the loan against.
Bridging loan. This could be a helpful way to get some short-term funding to cover your land and building work. This might mean you could stay in your existing property while the work's done. When the project's finished, you could then get a traditional mortgage to repay the loan. Bridging loans usually have high interest rates so research this option thoroughly.
What else should I think about before taking out a self build mortgage?
Before you go ahead with your self build, you'll need to know:
Where you're going to live while you build your new home. Will you move in with friends or family? Will you stay in your existing home? Will you rent? You'll need to consider whether your plan will affect your budget. Renting, for example, can be expensive.
What build system you're going to use. It'll need to comply with current Building Regulations and some lenders don't allow certain types of construction methods. So think about this carefully and consider your options.
Your estimated build cost. Lenders will need to know about this. Some want you to stick within a specific budget. Others will want costs to be confirmed by a quantity surveyor. It's always an idea to include some contingency within your budget.
Other costs you might not have considered. For example - fees for construction design and costs, or demolition and site preparation. There's also planning consent, land purchase fees, and project management to think about, as well as other factors.
Self-build mortgage FAQs
Is it hard to get a self-build mortgage?
Compared with a standard residential mortgage, it can be harder to be accepted for a self-build mortgage. As it’s a more niche mortgage product, lenders may consider it higher risk, meaning they will expect a larger deposit worth at least 25% and charge higher interest rates.
On top of this, you will also need to show that you’ve acquired planning permission to build on the land and thought through property plans and associated costs.
When are funds released with a self-build mortgage?
Funds will either be released in arrears, once you’ve made payments or in advance of when bills are due. Typically, the money comes in tranches tied to specific stages of the property's development. For instance, when you:
Buy the land
Build the foundations
Construct the house's shell
Finish the plastering, plumbing and electrical wiring
Complete the project and get the home valued
Is it better to buy an existing house than land with a self-build mortgage?
If you want convenience and aren’t looking for very specific features in your home, an existing property may be a better option for you. However, this may come at a higher price tag.
Building a home can work out much cheaper if things go well and you can build your home to your own personal specifications. However, it could involve much more work, planning and risk. Here are the pros and cons of building your own home.
How do I build my own home?
To build your own home, it’s important to set a budget, work out the cost and plan the timescales carefully. There are many things you’ll need to consider like how you will fund the build, accessibility, and planning permission. Don’t forget, that you’ll be responsible if anything goes wrong, so you’ll need to have contingencies in place. Here is everything you need to know about building your home.
Do I need planning permission to build a home?
Yes, you must get planning permission to be legally allowed to start building. There are two levels of planning permission available - outline planning permission and detailed or full planning permission. Here is how to get planning permission.
Can I switch to a better deal after the self build house is finished?
Yes, you could switch to a normal mortgage with a lower interest rate once the build is complete. In fact, many lenders will offer a product switch at the end of your project. Make sure you check whether your self-build mortgage comes with early repayment fees before you decide.
About our mortgage comparison
Who do we include in this comparison?
We include mortgages from every lender in the UK. They are all from lenders regulated by the Financial Conduct Authority. Here is more information about how our website works.
How do we make money from our comparison?
We have commercial agreements with some of the companies in this comparison and get paid commission if we help you take out one of their products or services. Find out more here.
You do not pay any extra and the deal you get is not affected.
Last updated: 11 October, 2021
Explore mortgage guides
A Complete Guide To Buying A Home & Buying A Home For The First Time | money.co.uk
The process of buying a house can take months, but knowing what to do and where to get help could make it quicker and easier. Here is what to do when you buy a home.
Buy a home
How Much Does It Cost To Buy A Home In 2024? | money.co.uk
Your home could be the most expensive purchase you ever make. Here is how much you might spend and how to make sure you can afford a mortgage and all of the other costs.
Read More
Leasehold Vs Freehold: Which Should You Get? | money.co.uk
If you’re looking to buy a property in England or Wales, you’ll notice that they’re either listed as leasehold or freehold. But what’s the difference? We’re here to explain the terms, and share what they might mean for you as a property owner.
Read MoreWhy compare mortgages with money.co.uk?
Comparing mortgages could help you save money. Our broker partner makes sure you get our best interest rates. Our aim is to provide you with the most up-to-date information, as well as useful tools and calculators to help you make life's most important decisions and take control of your money.
Proud to be award winning
We have always aimed to provide the best possible services to bridge the gap between our users and our clients. Over the years, we have been thrilled to be recognised by various prestigious bodies and organisations for those efforts.
